1Your Risk Profile

A thorough factfind will be completed to glean an understanding of your current position and to ascertain your goals and requirements. This will take into account likely changes in the future and the possible effects of planning on your circumstances.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

1Your Risk Profile

We measure your appetite and tolerance for risk using three aspects:

Using questionnaires, we discuss and explain risk and asset classes and their mix to achieve the appropriate allocation.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

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2Strategic asset allocation

Balancing risk versus reward by incorporating varying percentages of assets in an investment portfolio according to risk tolerance and investment time frame. Asset Allocation is based upon the principle that alternate assets perform differently in changing market and economic conditions.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

2Strategic asset allocation

Portfolios are efficient if they have the best possible expected level of return for their chosen level of risk. Portfolios positioned above the efficient frontier range are unachievable on a constant basis; portfolios below the range are too risky based on the amount of reward offered and thus are inefficient.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

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3Management approach

We believe in giving you a choice in how your money is managed. There are two distinct methodologies employed:

Active Passive

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

3Management Approach

Active management

An active manager aims to exploit market inefficiencies by purchasing securities (stocks etc.) that are undervalued or by short selling securities that are overvalued. Either of these methods may be used alone or in combination. Depending on the goals of the specific investment portfolio, hedge fund or mutual fund, active management may also serve to create less volatility (or risk) than the benchmark index. The reduction of risk may be instead of, or in addition to, the goal of creating an investment return greater than the benchmark.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

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3Management Approach

Passive management

Passive management is a financial strategy in which a manager invests in accordance with a pre-determined strategy that doesn't entail any forecasting. The idea is to minimize investing fees and to avoid the adverse consequences of failing to correctly anticipate the future. The most popular method is to mimic the performance of an externally specified index. Retail investors typically do this by buying one or more 'index funds'. By tracking an index, an investment portfolio typically gets good diversification, low turnover and low management fees.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

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4Portfolios of Funds

Asset allocation provides us with the asset basis to construct the risk-rated range of portfolios. Portfolios can be constructed with access to fund of funds, guaranteed accounts, Quantitative Intelligence, Managed Portfolios or bespoke offerings depending on a client's requirements.

Quantitative Intelligence removes the emotional and behavioural bias from the fund selection process. Instead Qi relies on hard data and analysis to score and select funds.

Please click here for more information on the performance of our Qi portfolios. All returns are based upon actual data and scoring since January 2011.

For further information on Qi please contact your adviser or email us at Qi@advies.co.uk.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

4Portfolio construction

The best performing asset class varies from year to year. Longer term, a mixture of assets would have generated a better return with less risk.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

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5Rebalance

Over time, a portfolio's current asset allocation/risk profile will drift away from its original asset allocation. Left unadjusted, the portfolio will either become too risky, or too conservative. Rebalancing adjusts the current asset allocation back in line to its original asset allocation.

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When certain funds outperform their portfolio piers (B), the Asset Allocation is rebalanced to maintain the portfolios original risk (A).

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

6Review

Essential to successful portfolio management is the continual monitoring of the underlying funds.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

6Review

All Funds and Portfolios are reviewed on an ongoing basis by the Advies Investment Committee, providing portfolio reviews on a 6 monthly basis. Clients are required to confirm our recommendation, to allow Advies to carry out all switches. The Advies Investment Committee is made up of senior members of Advies including all partners.

The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.

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